X Company currently buys a part from a supplier for $13.86 per unit but is considering making the part itself next year. This year, they purchased 3,400 units of this part; next year, they think they will need 3,800 units. Estimated costs to make the part are:

		Per-Unit	Total
Direct materials		$3.37	$11,458
Direct labor		4.58	15,572
Variable overhead		3.60	12,240
Fixed overhead		3.70	12,580
Total		$15.25	$51,850

Of the estimated fixed overhead, $6,038 are common costs that would be allocated to the part; the rest would be additional fixed overhead costs. X Company currently rents unused factory space for $2,100; it will have to use this space to make the part. If X Company makes the part instead of buying it, it will save?

The answer is not 10762, 6672, 640, or 2856!